JAPAN, whose inbound tourism took a hit from the March disasters, is intending to launch several new initiatives to bring recovery to visitor numbers, once a bigger promotional budget is approved by year-end.

At the opening of Visit Japan Travel Mart 2011, Japan Tourism Agency (JTA), international tourism promotion division, director, Shuichi Kameyama, said the body was requesting for a budget of 6.37 billion yen (US$82 million) for its 2012 fiscal year, up from 6.06 billion yen previously.

This amount will fund new projects such as Fly to Japan, which will see 10,000 overseas visitors obtaining free air tickets, relying on word of mouth to project the image of Japan as a safe tourist destination. JTA also plans to host 200 youths from China – its second-most important source market – in conjunction with the country’s 40th anniversary of normalisation of diplomatic ties with Beijing.

The bulk of the budget will then go to marketing promotions as part of the ongoing Visit Japan campaign as well as MICE-specific support.

Said Kameyama: “We want to expand our target markets from the current 15, and are hoping to add Indonesia, Vietnam, the Philippines, Brazil, Mexico, Italy, Spain, Saudi Arabia and the UAE. Indonesia and Vietnam are the most important among them because of their speed of economic development and the possible increase in airlines (flying between the countries) because of open skies agreements.”

He added that while initial efforts in those countries would be “small steps” such as hosting of fam trips, money would also be spent on advertising in the future, depending on the rate of growth.

According to latest figures, Japan’s number of foreign visitors from January to October was 5,095,400, still 30 per cent down compared to the same period last year. While some markets like Taiwan and Hong Kong showed positive growth over last October, Japan’s top market – South Korea – continued to post sharp negative growth.

In order to further restore demand for inbound travel, JTA launched a Japan Big Welcome Campaign last week. Running until March 31, 2012, countrywide discounts are offered in partnership with retail and F&B outlets, hotels and transport operators.

SYDNEY has clinched a 2,000-pax Indonesian incentive group that was also aggressively wooed by the Australian states of Victoria and Queensland.

The group (name withheld by TTG Asia e-Daily as corporate clearance has not been attained) has been handled by Esa Tour Indonesia for the past 17 years. A company dealing with a household product, the annual incentive rewards its direct sellers in top, middle and lower tiers who have achieved sales targets.

The group will visit Sydney in March 2012. Last year, it went to Beijing.

The growth in the size of the group is an indication of the effectiveness of incentive travel as a business tool for Indonesians. “When we first handled this incentive, there were only 90 people. Last year in Beijing we had 2,150 winners,” said Esa Tour Indonesia’s business development director, Ida Robinson.

Ida said Sydney won the race in the end as it had enough direct flights to accommodate the large group and it gave a commitment to “do its best” to facilitate visas for the winners.

The number of Asian incentives has grown 48 per cent per annum in the past five years ending June 2011, according to Business Events Sydney (BESydney).

BESydney’s acting CEO, Lyn Lewis-Smith, said in the last four months, Sydney won 15 new incentive events and of these, six were repeats, including AIA Thailand in 2011 and 2012, LG Korea (chemicals) in multiple trips between 2003 and 2009, Fubon Life Insurance in 2006, 2007 and 2011, Amway China in 2005 and 2011 and Amway Malaysia in 2010 and 2012.

– Full report in the next issue of TTGmice

AS part of South Korea’s broader tourism strategy, policymakers there are lining up a series of initiatives to bolster the development of the country’s domestic cruise industry.

Under the proposed measures, the government will allow local cruise ship operators to open on-board casinos to foreigners, introduce a tonnage tax system for cruise operators—similar to what is already in existence for cargo ships, as well as provide education programmes to train service staff and other maritime-related workers.

Piers will be constructed exclusively for cruise ships, port charges will be lowered and other supporting infrastructure will be built to lure more foreign cruise liners to South Korea.

In addition, the government is hoping to nurture a first homegrown cruise operator, as demand for cruise travel is projected to rise, particularly from neighbouring China.

Speaking to TTG Asia e-Daily at the recently concluded Cruise Shipping Asia 2011, Wook-Kyun Kim, vice chairman and co-founder, AJU Incentive Tours (Korea) said: “Without a doubt, the cruise market in North-east Asia is set to benefit from the positive developments in South Korea.”

There are also plans in motion to grant visa waivers for foreign visitors who arrive by cruise ship.

“The Korean Ministry of Land and Marine transport has debated over this issue (visa waiver) for awhile, and this, alongside the various port developments, will certainly help to put Korea on the cruise map,” said Jong Woo Lim, manager-strategic tourism product team, Korea Tourism Organisation.

An international cruise terminal currently being built at Yeosu (TTG Asia e-Daily, November 17) is due to open in 2012, while Busan’s international cruise terminal, situated in a revitalised lifestyle and leisure zone and scheduled for completion in 2014, is expected to boost South Korea’s status as a cruise hub and destination.

Presently, only two ports in the country, Jeju and Busan, are able to accommodate large cruise ships.

ANGSANA Laguna Phuket, the newest property within the Laguna Phuket integrated resort, will open on December 1 following an extensive US$30 million refurbishment.

Occupying the site of the former Sheraton Grande Laguna Phuket in Bang Tao Bay, the flagship Angsana property, which features a new purple-themed brand identity, will be the largest Angsana resort in South-east Asia—offering 409 keys in ten different room categories.

The resort will have up to six F&B outlets, an Angsana Spa, and a two-storey Treehouse Kids’ Club. Meeting facilities include four meeting rooms with capacity for 30-120 pax, five boardrooms, and a 358m2 ballroom with capacity for 400 pax.

Meanwhile, the property’s XANA beach club, complete with sun lounges, daybeds and its own F&B offerings, is slated to open in March next year.

THAI Airways International (THAI) has successfully launched two new longhaul routes in mid-November, as the Thai government confirmed last week that flood threats to inner Bangkok had passed.

The flag carrier started thrice-weekly Copenhagen-Phuket services and added three additional flights per week on the Copenhagen-Bangkok route on November 11. It operates both services using the Boeing 747-400 aircraft.

The airline also launched thrice-weekly Bangkok-Brussels services, using the Boeing 777-200ER aircraft, on November 17.

THAI president Piyasvasti Amranand said tourists had been informed that the country’s popular destinations such as Chiang Mai, Chiang Rai, Phuket, and Krabi have not been effected by the floods, and that they are able to connect to these destinations via Suvarnabhumi Airport as per normal.

“THAI informed passengers in advance, instead of waiting for flood levels to completely dry out, so that passengers may make travel plans for this winter season,” Piyasvasti explained.

Meanwhile, THAI has resumed operations at its Vibhavadi-Rungsit Road headquarters, after temporary closing the facility on November 6 due to the flood situation at the time.

SHANGRI-LA Hotels & Resorts officially opened its second Kerry Hotel on Saturday, marking the completion of the first phase of a multimillion-dollar refurbishment of Kerry Centre Hotel, Beijing.

Rebranded as Kerry Hotel, Beijing, the property joins its sister hotel, Kerry Hotel Pudong, Shanghai, which launched the brand in February this year.

With a host of new facilities, amenities and services, Kerry Hotel, Beijing features contemporary Club rooms and suites, a Club lounge, a reconfigured lobby, and two new dining outlets: Kerry’s Kitchen and Kerry’s Pantry.

The hotel’s Centro bar and lounge has also been redesigned for a fresh clean look and added an outdoor bistro-style terrace.

The 1,560m2 grand ballroom, which can accommodate up to 1,500 pax, has also been upgraded with improved audiovisual equipment.

AT the rate China is growing for Australia, the country’s tourism vision 2020 of boosting Chinese arrivals to 876,000, and their travel spend to A$7 billion (US$6.97 billion) to A$9 billion is turning out to be an easy target.

Saying the targets are “more than achievable”, Johnny Nee, Tourism Australia’s regional general manager, North Asia, & chief representative China, explained China already topped the charts in terms of spending last year, even though it was number four in terms of number of arrivals. And by September, China had risen to the second largest market for Australia, after New Zealand, elbowing out traditional markets the UK, US and Japan.

Nee told TTG Asia e-Daily: “I believe more than 900,000 Chinese will visit Australia by 2020 because, by the end of 2011, I expect more than 500,000 will already have visited.”

Nee said the restructuring of the Hong Kong and Greater China office had been effective in helping Tourism Australia focus on the right strategy to tap China, building Aussie specialists among Chinese travel consultants and now communicating directly to consumers to further raise awareness of Australia. As well, more new airlinks and gateways, such as Guangzhou, were tied up.

But Nee said it was a misnomer to see China as an easy target. “Competition is strong, so our focus is also on making the industry here understand the needs of China market. We take care of the demand side, they have to come up with the right supply and innovative ideas.”

– Full report in the next issue of TTGmice

FORMER Hilton International and Accor Asia-Pacific chiefs Koos Klein and Ray Stone are bringing an Asian vision to Ayers Rock Resort, Australia’s largest integrated resort comprising five hotels.

A new direction includes a strong Asian marketing focus for the first time, with the resort tying up with Accor to open new markets for it and boost domestic leisure and conference demand. The partnership is designed to tap on Accor’s loyalty programme and network in Australia – over 160 hotels with this agreement – aside its worldwide sales and distribution network.

Already, Ayers Rock Resort has made a breakthrough with the China market with its first Chinese charter flight arriving in January. Stone has also negotiated for the resort to be included in a number of new Australian tour programmes being sold in China next year.

The charter is operated by Guangzhou-based BCTS using a Qantas Airways aircraft. The package, primarily a tour to the Northern Territory, is being marketed throughout China and Hong Kong through the travel trade. The group will be in Uluru and spending Chinese New Year at the resort from January 22 to 24.

Stone, in Sydney, told TTG Asia e-Daily: “The Asian market, particularly China, forms an extremely low percentage of our business at present. But this charter, along with a new Chinese language website, some social media activity and various promotions with a number of Chinese tour operators, is the start of a serious programme to develop the market.

“I expect the China market to be on a level with the UK, Japan and North America as a major source of business in three years.”

Stone is executive general manager of Voyages Indigenous Tourism Australia, which operates the resort. Klein is the managing director.

“Since the Indigenous Land Corporation purchased Ayers Rock Resort earlier this year we have been looking at a comprehensive range of measures to rejuvenate what is one of Australia’s most important tourism assets,” said Klein.

The five hotels, Sails in the Desert, Desert Gardens Hotel, Outback Pioneer & Lodge, Emu Walk Apartments and Lost Camel Hotel, will undergo extensive refurbishments. A new Conference & Exhibition Centre will open in August 2012. Another new addition will be a luxury under-the-stars dining experience, Tali Wiru.

– Full report in the next issue of TTGmice

AFTER a tumultuous 2011, Japan is looking forward to welcoming the highest number of foreign cruise ship calls on record in 2012.

International cruise ships are expected to make 350 calls to Japan in 2012, compared to 338 in 2010, and 185 this year, according to Japan National Tourism Organisation executive director Singapore office, Motonari Adachi.

This year, a total of 334 calls were expected. However, after the March earthquake and subsequent tsunami, a large portion of these never materialised.

Dario Rustico, vice president sales & marketing Pacific Asia Operations at Costa Crociere, said: “2011 was an ‘exceptional’ year for us, with the various geopolitical, financial and natural disasters around the world. In Japan, in particular, we had to cancel our itineraries from May to August because of the earthquake and tsunami.”

He added: “The overall profitability of our company was not affected though, as other areas such as South America and Dubai picked up the slack.”

Adachi said the record number of international cruise liners visiting Japan next year could be accredited to the return of the biggest players in the region, including Royal Caribbean and Cunard. “Royal Caribbean alone is purportedly making 100 calls to Japan next year,” he said.

Princess Cruises, MSC Cruises and Disney Cruises are also rumoured to be extending their upcoming itineraries to encompass Japan, said Yoshi Ohkuma, director of marketing-cruise division, Japan Travel Bureau.

Meanwhile, a number of ports in Japan are using tax incentives – on a local rather than on a federal scale – to lure foreign ships to the country’s shores.

Osaka, one of the main ports capable of handling larger cruise ships, introduced port entry fee exemptions in April, alongside discounts on wharf charges. In addition, the province’s port authority is currently in discussions with the local government to offer international cruise operators even more incentives.

CRUISE stakeholders are pouring their resources into education and training, saying this is what Asia needs in order for the industry to take off.

Asia Cruise Association (ACA) chairman Rama Rebbapragada said the body had “identified cruise training as one of its cornerstone activities”, launching its first training programme for travel consultants at the 24th International Travel Expo in Hong Kong last June.

ACA has since worked with Seatrade and the China Cruise & Yacht Industry Association to conduct a number of training sessions over the past year, and is also partnering UBM to do the same at this year’s Cruise Shipping Asia.

“It is through training programmes that we can enhance cruise product knowledge within our distribution network and broaden our outreach in this market,” said Rebbapragada, adding that ACA had trained more than 400 travel consultants so far, and was working towards a goal of training “thousands every year”.

Silversea Cruises senior vice president, UK, Europe & Asia-Pacific, Steve Odell, said besides supporting ACA’s work, it would also launch its own online academy in Asia by next year, in addition to the training seminars, ship showcases and fam trips it already invests in. The training would also incorporate an incentive component based on booking results.

Other cruise heavyweights which already have their own online institutions in the region include Costa Cruises—which has separate B2B online training portals for Japanese and South Korean travel consultants, and Holland America Line (HAL)—whose online academy, which conducts courses in English, has seen about 13,000 graduates to date. HAL’s high-end sister brand, Seabourn, will also be rolling out an online academy over the next few months.

According to Richard Meadows, executive vice president of marketing, sales & guest programs, HAL and president, Seabourn, travel consultants who have undergone the training curriculum will be more effective in terms of their sales pitch and identifying target customers.

“We have to do a better job of helping the travel trade to understand the USPs of both our brands. It is very difficult for a travel consultant to discover for himself what sets apart the different product offerings without proper training,” he explained.

Besides the various training programmes on offer, Asia’s cruise ecosystem has also received a boost, with cruise terminal operators officially launching the seven-member Asia Cruise Terminal Association earlier this week, creating a platform for sharing of best practices and training.

Separately, the Singapore Cruise Centre is partnering the Institute of Technical Education to develop Singapore’s first Maritime Passenger Service course to build a healthy pipeline of human resource. An MoU will be signed today, with the curriculum commencing next April.

Additional reporting from Brian Higgs